Opportunity Cost Comparison

"What's wrong with the following statement: If two people buy an airplane ticket from Detroit to San Francisco for $450 round-trip, the opportunity cost of that flight is the same for both of them."

In the case where there is no explicit accounting or monetary cost (price) attached to a course of action, or the explicit accounting or monetary cost is low, then, ignoring opportunity costs may produce the illusion that its benefits cost nothing at all. The unseen opportunity costs then become the implicit hidden costs of that course of action.

Well, opportunity cost is a relative concept and varies among individuals, and organizations, in time and space. I do not see the real cost of output forgone, lost time, swag, pleasure or any other benefit that provides utility should also be considered in the above example opportunity costs. Am I missing some hidden meaning?

Solution Preview

You're not missing anything but keep in mind that the question is asking for specifics. The opportunity cost of the ...

Solution Summary

What's wrong with the following statement: If two people buy an airplane ticket from Detroit to San Francisco for $450 round-trip, the opportunity cost of that flight is the same for both of them.